Biden Signs Legislation Forcing TikTok Sale or U.S. Ban
President Biden signs a bill requiring ByteDance to sell TikTok within nine months or face a U.S. ban. TikTok vows to challenge the law in court as unconstitutional.
President Biden signs a newly passed bill that forces ByteDance to sell TikTok or face a complete ban in the United States. The legislation packages this divestment requirement with foreign aid for Ukraine and Israel, and it gives the Chinese parent company nine months to complete a sale with a possible 90-day extension. If ByteDance fails to find a buyer, app stores legally cannot distribute the popular social media platform to American users.
TikTok immediately pushes back against the legislation and prepares a legal battle to overturn the measure. A company spokesperson calls the law unconstitutional, arguing that TikTok already invests billions of dollars to secure U.S. data and keep the platform free from foreign manipulation. TikTok CEO Shou Zi Chew also shares a video message calling the signing a disappointing moment and promising that the company keeps fighting for its users.
The potential ban threatens to disrupt the digital economy, as TikTok highlights its massive footprint of 170 million American users and 7 million businesses. The company recently reports generating $14.7 billion for small and mid-sized U.S. companies, warning that a ban devastates these creators and merchants. If the ban takes effect, it follows a similar path to India, which outlawed the app four years ago and saw competitors like YouTube Shorts and Instagram Reels quickly absorb the displaced user base.